Manufacturers outsourcing to plug skills gap

The Automotive Council says that the lack of skilled workers is having a significant impact on business operations, with thousands of vacancies remaining unfilled — the automotive sector alone is advertising up to 5,000 vacancies.

This follows a recent report from trade union GMB stating the manufacturing sector has suffered a decline in employment over the past 10 years, with major OEMs fighting to ‘cannibalise’ talent.

The solution for many has been to outsource specialist services, with Leadec Industrial Services (www.leadec-services.com/en) experiencing significant demand for external skills support from OEMs across the UK in recent months.

According to the company’s CEO, Phil McClennon, what was once seen as ‘a quick fix’ is fast becoming a critical part of a sustainable business model for manufacturing organisations.

“We’re noticing a growing pool of what we call revivalist manufacturers, who are increasingly looking for new solutions to age-old problems that they can’t solve through traditional recruitment processes.

“With few available skills to source, these companies are investing in other ways to plug the gap and seeking out manufacturing-specialist outsourcing businesses to respond to an immediate need — and to drive value in other areas of the business.

“We’re taking on more plant maintenance and production efficiency work, and because of our proven track record in manufacturing, we’re also able to advise customers on effective waste management techniques, facilities upgrades and production equipment installation.

“We’re effectively helping to fill the role of not one but several people, adding value across the plant ecosystem.”

According to Mr McClennon, manufacturers no longer view outsourcing as an immediate cost saving, but as a strategic tool that is helping them to unlock higher levels of performance across the business.

“Manufacturers want to work with businesses that understand their processes and can work in partnership to boost their operational performance.

"As a specialist in this sector, Leadec is experiencing growing demand from businesses that are struggling to recruit the right people in the right places, and it is working with manufacturers to make them more efficient on a longer-term basis.

“While the skills gap shows no sign of shrinking, specialist outsourcing is providing a sustainable solution to manufacturing.”